You may have recently seen or read about former all-star outfielder Lenny Dykstra in the news. Unfortunately, this recent publicity is not because of his athletic prowess. Instead he has been indicted for multiple crimes, one of which is embezzlement of funds from the bankruptcy estate. Allegedly, Dykstra sold or destroyed more than $400,000 in property belonging to the bankruptcy estate. At first I found the whole story to be quite amusing, but then realized that there are some valuable lessons to be learned from Mr. Dykstra’s situation.
First, get an attorney. There are many pitfalls throughout the bankruptcy process that can be avoided simply by hiring an attorney. Dykstra had an attorney but, he either did not heed his attorney’s advice or was unwise in his selection of an attorney. You don’t want to pick just any attorney. You need to find someone you can trust and who will tell you what you need to know – not just what you want to hear. Sometimes you have to give up some property or money in bankruptcy. Don’t just look for the first person who will tell you otherwise. Such a choice could lead you to the same result as Dykstra.
Second, once a bankruptcy is filed you must be honest with the court. No one wants to be left destitute. No one should be left destitute. No one will be left destitute if they do things appropriately in bankruptcy. Bankruptcy will provide substantial relief, but the cost of this relief is complete and accurate disclosure of your entire financial picture. Hiding property or transactions from the court is not necessary to achieve this goal, but in fact is a hindrance to this goal as such lies could cause the liar, not only to be denied bankruptcy protection, but also have him or her thrown in prison.
Third, you should be honest with your attorney about what property you own and seek his or her advice as to how to best utilize State and Federal laws to achieve the full benefit and protection afforded to you in the law. Clients are scared about losing property in bankruptcy and this fear sometimes leads them to hide information not only from the Court, but from their attorney as well. The reality is that a good honest attorney can usually help you to either protect the property or at least maximize the benefit of the property before filing bankruptcy. Your attorney is your greatest asset in bankruptcy. Seek your attorney’s advice and follow it.
Finally, no one is immune from financial hardship. I don’t know the details of what caused Dykstra to file bankruptcy, but one thing is for sure. No matter how much money you have, financial distress can still find you. All it takes is a bad economy, a job layoff, or perhaps a few bad investment decisions. For some it could be a combination of any of the above.
If you are considering filing for bankruptcy or have any questions concerning bankruptcy please call Benjamin Skinner, experienced Arizona bankruptcy attorney today! (480) 648-8975